Correlation Between Edison Cobalt and Core Assets

Can any of the company-specific risk be diversified away by investing in both Edison Cobalt and Core Assets at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Edison Cobalt and Core Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Edison Cobalt Corp and Core Assets Corp, you can compare the effects of market volatilities on Edison Cobalt and Core Assets and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Edison Cobalt with a short position of Core Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edison Cobalt and Core Assets.

Diversification Opportunities for Edison Cobalt and Core Assets

-0.37

Correlation Coefficient

Edison Cobalt  Core Assets

Very good diversification

The 3 months correlation between Edison and Core is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Edison Cobalt Corp and Core Assets Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Assets Corp and Edison Cobalt is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Edison Cobalt Corp are associated (or correlated) with Core Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Assets Corp has no effect on the direction of Edison Cobalt i.e., Edison Cobalt and Core Assets go up and down completely randomly.

Pair Corralation between Edison Cobalt and Core Assets

Assuming the 90 days horizon Edison Cobalt Corp is expected to under-perform the Core Assets. But the pink sheet apears to be less risky and, when comparing its historical volatility, Edison Cobalt Corp is 1.75 times less risky than Core Assets. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Core Assets Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  20.00  in Core Assets Corp on May 4, 2025 and sell it today you would earn a total of  25.00  from holding Core Assets Corp or generate 125.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Edison Cobalt Corp  vs.  Core Assets Corp

Edison Cobalt Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Edison Cobalt Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Core Assets Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Core Assets Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Core Assets reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Edison Cobalt and Core Assets

The main advantage of trading using opposite Edison Cobalt and Core Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edison Cobalt position performs unexpectedly, Core Assets can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Core Assets will offset losses from the drop in Core Assets' long position.

The idea behind Edison Cobalt Corp and Core Assets Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.